Imagine your company as a fishing boat setting out for sea.Īs you leave port and head for the rich fishing waters just off the coast, you notice several other fishing boats heading in the same direction. To understand the difference between Red and Blue Oceans we need to swap our tranquil, sheep-filled pastures for the rougher seas of the ocean. Difference Between Blue Ocean and Red Ocean Strategy If you uncover an untapped, uncontested market space then the opportunities are truly limitless. Somewhere exciting, never before explored.īut if you can pull it off. Its methodology provides companies with an escape route from the intense competition over the same market space, as we just discussed. So under such conditions, why not try establishing new markets where demand is created, not squabbled over, and the competition is made almost irrelevant?īlue Ocean Strategy is a business term that first appeared in the book (of the same name) by W. However, intense competition has led industries to become saturated, meaning increased market share does not always result in higher profit margins. Will anyone ever seriously challenge Coca Cola? The beverage industry is a great example of this. Historically, the best business strategies have been Darwinian in nature, with companies battling it out and the winners taking home the largest market share. It would take a bold move going so sharply against the grain. One that stood out on the industry pasture to customers by offering a new, diverse, and differentiated product or service? They all look, act, and feel more or less the same.īut what if you could turn your business into a black sheep ? One that went against the herd. Nobody’s offering anything different, nobody’s product or service stands out. Their thick wooly coats form a sea of white as far as the horizon can see. When looking over the pasture it’s almost impossible to tell one business from another. Walking around and grazing in the same field as their competitors, flocking aimlessly to the sound of new industry trends and statistics with the rest of the herd.
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